Newcrest Mining completes acquisition of Pretium Resources

9 March | Deals

Australia’s Newcrest Mining has closed the acquisition of Pretium Resources, which owns the Brucejack mine in the Golden Triangle region of British Columbia, Canada. 


Last November, Newcrest Mining had agreed to acquire the common shares it did not own in Pretium for $2.8bn (C$3.5bn) through a Canadian plan of arrangement. A high-grade gold mine, Brucejack commenced commercial production in 2017. 


The firm stated that it has planned a three-phase transformation programme to boost the long-term potential and value of the Brucejack mine and the associated district. 


Under the first phase, Newcrest is looking at incorporating a “safety transformation plan”, focused around the NewSafe safety programme and critical control management programme for high-risk tasks, to continue the safety improvement aspects at the Brucejack mine.  


In the second phase, Newcrest plans to focus on boosting mill throughput capacity and mining performance. It is aiming for an increase in the process plant capacity from the current permitted processing rate of 3,800tpd to between 4,500tpd and 5,000tpd. 


The third phase will see the firm focus on using its expertise to unlock the potential of the associated district to deliver mineral resource and ore reserve growth. Newcrest expects Brucejack to produce between 95,000oz and 115,000oz of gold during its ownership in 2022. 


Newcrest managing director and CEO Sandeep Biswas said: “Through this acquisition and the continued development of our outstanding organic growth pipeline, Newcrest’s base case gold production is expected to remain strong until at least 2030, and we have a range of further upside opportunities being progressed across the portfolio.” 

9 March | Deals

Vision Lithium to acquire Canadian lithium property 


Vision Lithium has agreed to purchase a 100% undivided interest in 40 contiguous mining claims in the province of Quebec, Canada. 


The firm will acquire the claims from vendors Michèle Richard and Gabriel Béland. The claims cover an area of 2,315.5ha and, combined with an additional 31 claims, are collectively known as the Decelles property. 


According to the agreement, Vision Lithium will make a $10,000 aggregate cash payment and issue 250,000 common shares to the vendors.


The property is located 55km south of Val-d’Or, Quebec and 75km south-east of the Vision Lithium’s Cadillac Lithium property. Vision Lithium said that the 2021 prospecting at the property suggested the presence of several pegmatitic dikes.


Vision Lithium president and CEO Yves Rougerie said: “The Decelles claims are an interesting addition to our growing portfolio of lithium properties.


"Since our acquisition of the 332-claim Cadillac property, almost 1,300 new claims have been staked by third parties to the east, south and west of our property. "

8 March | Deals

Manitou Gold to sell Canadian gold properties to Dryden Gold 


Canadian exploration company Manitou Gold has agreed to divest its 100% interest in Dryden properties in north-western Ontario to Dryden Gold. 


Dryden Gold will purchase the Dryden properties, including Kenwest and Gaffney, by making aggregate payments of $5.49m (C$7m) to Manitou. Manitou will receive four million common shares of Dryden Gold, as well as retain a 1% net smelter royalty.


Furthermore, Dryden Gold will fund $1.09m (C$1.4m) for exploration work over a period of three years. 


Dryden Gold will own a 100% interest in the property upon completion of full of all cash payments, issuances of all shares and completion of all work commitments.


Manitou president and CEO Richard Murphy said: “We are excited that Dryden Gold will be taking the lead in advancing exploration on the Dryden properties.


"Manitou will become a significant owner of Dryden Gold, [which] will be pursuing an initial public offering later this year, following which Manitou will retain a large insider ownership position of Dryden Gold. "

8 March | Prices

London Metals Exchange suspends nickel trading as prices explode 


The London Metals Exchange has paused trading and cancelled orders of nickel as prices rose more than 250% in one day. 


On 7 March, commodities markets opened with 3-month nickel contract prices sitting at $29,750 per ton. By the end of the day, this had risen to $42,990, a 44% increase. This dramatic climb only increased the following day, with prices briefly climbing to more than $100,000 per tonne in early morning trading. 


In response, on 9 March, the London Metals Exchange suspended trading of its three-month nickel deliveries for the rest of the day. A notice by the exchange said that Russia’s invasion of Ukraine “had evidently affected the nickel market in particular”. It also said it will “give consideration to a multi-day closure, given the geopolitical situation which underlines recent price moves”. 


The price surge comes amid anticipation of disruption to Russian nickel supplies. Russia exports approximately $4bn of nickel per year, making up around 1% of all its exports.


The country’s invasion of Ukraine has caused many nations to impose economic sanctions against it, threatening continuity of nickel trade. 


Russia also produces around $6.75bn of gold exports per year. Since the invasion, notoriously-steady gold prices have risen from opening at around $1,900 per troy ounce on 23 February to opening above $2,000 per troy ounce on 8 March. 

9 March | Deals

Katoro Gold and LVG sign JV deal for Tanzanian gold project 


UK-based Katoro Gold has signed a joint venture agreement with Lake Victoria Gold (LVG) to develop the Imweru gold project in Tanzania, Australia. 


Under the deal, Australian mining firm LVG will earn a stake of up to 80% in the project while Katoro will own the remaining 20% stake as a carried interest. LVG will also be responsible for 100% of the JV’s funding requirements, as well as all debt funding. 


The joint venture will reimburse previous expenditures, totalling $875,000, to Katoro on or before 31 December 2023. 


The agreement follows the cancellation of the deal signed by Katoro in June 2020 to sell the Imweru project to LVG.


As a result, Katoro and LVG have decided to cancel the sale deal and instead sign a collaborative agreement. The joint venture board will comprise three directors, of which two will be nominated by LVG and one by Katoro. 


Katoro CEO Louis Coetzee said: “The decision to cancel the sale of the project and to enter a joint venture instead was a strategic decision by the Katoro board to address challenges that made it impossible to complete the sale agreement within an acceptable time frame.” 

Ukraine latest

Rio Tinto to cut ties with Russian firms over Ukraine crisis 


Anglo-Australian metals and mining firm Rio Tinto said it will cut all ties with Russian businesses, in the wake of the country’s military invasion of Ukraine, reported Reuters. The latest move comes due to increasing pressure on Western firms to exit Russia. 

Brazil calls for lifting Amazon mining ban in wake of Ukraine conflict 


Brazilian President Jair Bolsonaro has called for the lifting of mining restrictions in indigenous territories in the Amazon amid the Ukraine crisis, reported the Global Times via Agence France-Presse. The move is aimed at offsetting potential shortages for fertilisers amid escalating tensions between Russia and Ukraine. 

Kinross Gold to halt Russia operations amid Ukraine crisis 


Canadian miner Kinross Gold is suspending all of its operations in Russia following the country’s invasion of Ukraine. The gold and silver mining company will suspend activities at its Udinsk development project in Khabarovsk Krai, and operations at its Kupol gold mine, which are located around 7,000km away from Ukraine. 

Glencore reviews businesses in Russia amid Ukraine crisis 


Anglo-Swiss commodity trading and mining company Glencore is reviewing all of its business activities in Russia following the country’s invasion of Ukraine. Among the activities under review is Glencore’s equity stake in Russian aluminium and hydropower group En+. 

17 February |  Technology

Sandvik develops new battery-electric truck for underground mining 


Sandvik has developed what it claims to be the largest-capacity battery-electric truck to support underground mining operations. 


The new Sandvik TH665B prototype has a 65-tonne payload capacity and is currently undergoing factory testing in California, US. Sandvik plans to finalise the trial agreement with AngloGold Ashanti Australia and underground mining services company Barminco. 


AngloGold Ashanti plans to trial the new prototype at its Sunrise Dam gold mine in Western Australia to validate its viability in a long-ramp haulage application. 


The trials of the Sandvik TH665B truck will be carried out prior to its commercial production, which is planned to start in late-2023. 

Sandvik said that a fully loaded Sandvik TH665B machine would be up to 30% faster on a 1:7 ramp when compared to a conventional diesel underground truck. 


The machine is also equipped with extremely efficient electric driveline to offer high acceleration and fast ramp speeds. Additional features of the truck include a new battery lifting system to provide improved reliability and Sandvik’s self-swapping system to enable quick and easy battery swap within minutes. 


Sandvik mining and rock solutions president Henrik Ager said: “Our 65t battery-electric truck is our latest development in helping mass hard rock miners and contractors to make the shift towards more productive, emission-free mining.” 

2 March | Deals

Asia Broadband to purchase Mexican gold mine project


US-based resource company Asia Broadband (AABB) has agreed to acquire a 100% interest in the Zodiac Gold Mine Project in Buen Pais, Jalisco, Mexico.


The #218704, Zodiaco I concession is situated in the community of Buen Pais, approximately 15km south-east of the municipality of Tonila and 30km from Colima. The definitive purchase agreement also includes a 150tpd capacity processing plant.


In accordance with the agreed terms, AABB  will pay $700,000 for the property. The deal also includes an option to acquire two additional Zodiac concessions.


Asia Broadband president and CEO Chris Torres said: “The Zodiac is an amazing acquisition for the us in terms of its production potential and economic value."

In brief

Rio Tinto to temporarily halt Serbian lithium project


Anglo-Australian metals and mining firm Rio Tinto said it will cut all ties with Russian businesses, in the wake of the country’s military invasion of Ukraine, reported Reuters. The latest move comes due to increasing pressure on Western firms to exit Russia. 

Brazil calls for lifting Amazon mining ban in wake of Ukraine conflict 


Brazilian President Jair Bolsonaro has called for the lifting of mining restrictions in indigenous territories in the Amazon amid the Ukraine crisis, reported the Global Times via Agence France-Presse. The move is aimed at offsetting potential shortages for fertilisers amid escalating tensions between Russia and Ukraine. 

Kinross Gold to halt Russia operations amid Ukraine crisis 


Canadian miner Kinross Gold is suspending all of its operations in Russia following the country’s invasion of Ukraine. The gold and silver mining company will suspend activities at its Udinsk development project in Khabarovsk Krai, and operations at its Kupol gold mine, which are located around 7,000km away from Ukraine. 

Glencore reviews businesses in Russia amid Ukraine crisis 


Anglo-Swiss commodity trading and mining company Glencore is reviewing all of its business activities in Russia following the country’s invasion of Ukraine. Among the activities under review is Glencore’s equity stake in Russian aluminium and hydropower group En+. 

ALROSA launches project to convert its vehicles to natural gas


Russian miner ALROSA has launched a project to convert its vehicles from gasoline and diesel to natural gas to cut greenhouse gas emissions and boost economic efficiency.